Stocks fall to 36,123 points as market panics over IMF's tough conditions
KSE-100 shed another 1,008 points (-2.7%) to close at 36,123 levels.
(Web Desk) – The stock market during the outgoing week continued to remain under bearish pressure as another 1,000 points were receded, which were enough to give a severe blow to local as well as foreign investors.
The market took a hit on investor fears over likely tough International Monetary Fund (IMF) conditions for a bailout package for Pakistan.
The local bourse fell victim to bearish sentiments for the fifth week in succession as KSE-100 shed another 1,008 points (-2.7%) to close at 36,123 levels.
An average daily traded volume amounted to 105 million shares, down by 14 percent compared to preceding week, whereas the daily average traded value shrunk by 13 percent to $29 million.
Net foreign buying declined from $9.3 million in the previous week to $4.8 million with significant portion invested in the cement sector.
Continuing the selling spree from the previous week, mutual funds sold a cumulative $13 million worth of shares.
Engineering, Oil and Gas Exploration and Refineries were major sectors those under-performed the declining index, while Tobacco and Cable and Electrical Goods remained among the best performing sectors during the week.
Fauji Foods Limited was the worst performing stock, losing 11 percent after Inner Mongolia Yili Industrial Group Company Limited withdrew its intention of acquiring a 51 percent stake.
During Prime Minister Imran Khan’s visit to China, the premier signed six bilateral agreements with the host country, most prominent on the list being CPFTA-II, ML-1 and the Havelian Dry Port.
Concerns over ongoing talks with the IMF regarding a potential bailout package kept investors on the back foot.
The next round of technical talks with the IMF will commence during the month for bailout package and the process would be finalised at the end of the month.
“We foresee the market to continue languid until any positive sentiments boost investors’ confidence. Therefore, staying on the sidelines with ample liquidity for value hunting in blue-chip stocks is a wise strategy”, said an analyst from Habib Metro Finance Limited.
Volumes usually dry out in the month of Ramazan given shorter trading hours, said an analyst from Arif Habib Limited.
“Albeit, with budgetary proposals following in, we believe certain sectors / scrips may come under limelight. Whereas, staff level agreement of the IMF program is expected to restore confidence of the market. We advise investors to accumulate stocks with a long-term view.”
